Xiaomi moved into fourth place, almost doubling its market share to 6.9 percent from 3.6 percent in Q4 2016 after an estimated 79 percent increase in sales.
Meanwhile, Apple saw a 5 percent decline in iPhone sales, while marketshare remained steady at 17.9 percent.
This low demand has caused Apple to reportedly reduce its iPhone X production by half, leaving Samsung with a surplus of OLED panels which the South Korean company is now unable to sell. Expect Apple, major vendors have recorded an increase and Samsung managed to capture around 21% of the global market share in 2017.
According to Gartner's research director Anshul Gupta, there are two reasons behind the sales numbers fall.
The market researcher blamed the market contraction on a lack of quality low-priced smartphones, to win over feature phone users, as well as a longer replacement cycle for existing smartphone users, as new models offer few major improvements.More news: Emily Ratajkowski Marries Sebastian Bear-McClard in Surprise Courthouse Ceremony
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"Second, replacement smartphone users are choosing quality models and keeping them longer, lengthening the replacement cycle of smartphones", said Gupta.
"Apple had three new smartphones - the iPhone 8, iPhone 8 Plus and iPhone X - yet its performance in the quarter was overshadowed by two factors".
Huawei sold more than 43 million handsets to claim 10.8 per cent of the market, up from 9.4 per cent, while Xiaomi - with more than 28 million mobiles flogged - saw its share increase by a whopping 89 per cent from 3.6 per cent to 6.3 per cent. For example, a cost concerned user may retain a device like iPhone X or Galaxy S8 for more than a year's time.
"Second, component shortages and manufacturing capacity constraints preceded a long delivery cycle for the iPhone X, which returned to normal by early December 2017".
In operating system market share, Google's Android extended its lead over iOS capturing 85.9% of the market.
"Future growth opportunities for Huawei will reside in winning market share in emerging APAC and the US", Gupta said. However, we would be remiss if we didn't point out that on a yearly basis, the 1.537 billion units shipped in 2017 was 2.7 percent ahead of the 1.496 billion units shipped in 2016. The other strategy of Xiaomi should be in increasing sales in Indonesia and other developing telecom markets in emerging APAC in order to position it as a strong global brand.